Biocon stock tanks 6% on heavy volumes; what's triggered the sell-off?

The board of directors of Biocon are scheduled to meet on December 06, 2025, to consider and approve the proposals for investment in Biocon Biologics, an unlisted material subsidiary of the company.

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Biocon share price today

 

Share price of Biocon slipped 6 per cent to ₹387.45 on the BSE in Thursday’s intra-day amid heavy volumes.

 

At 12:39 PM; Biocon was quoting 5 per cent lower at ₹388.10, as against 0.15 per cent rise in the BSE Sensex. The average trading volume on the counter jumped over two-fold, with a combined 6.45 million equity shares changing hands on the NSE and BSE. 

 

However, in the past six months, Biocon outperformed the market by surging 15 per cent, as compared to a 5 per cent gain in the benchmark index. The stock had hit a 52-week high of ₹424.95 on November 18, 2025.  CATCH STOCK MARKET LIVE UPDATES TODAY

Why is Biocon stock under pressure on Thursday?

 

Biocon on Wednesday, December 3, 2025 after market hours informed that the board of directors of the company are scheduled to meet on Saturday, December 06, 2025, to consider and approve the proposals for investment in Biocon Biologics (BBL), an unlisted material subsidiary of the company.

 

Biocon proposed to make an investment in BBL by way of purchase or acquisition of securities from shareholders of BBL, for cash and/or consideration other than cash through issuance and allotment of fully paid-up equity shares of the company on a preferential allotment basis through private placement to such shareholders.

 

Biocon further said the board shall also consider raising of funds by way of issuance of commercial paper through private placement and/or equity shares or any other eligible securities, through one or more permissible modes including but not limited to qualified institutions placement, rights issue, preferential issue and further public offer etc., in one or more tranches.

 

Last month, there were reports that suggested Biocon was considering merging BBL, IPO and share swap option.

 

In this regard, Biocon in May 8, 2025 issued a press release stating that the Board is constituting a Committee to evaluate various strategic options for restructuring including the merger of BBL and BL. Such options shall be evaluated taking into consideration matters relating to legal and tax aspects, and subject to receipt of all approvals.

 

Accordingly, the Committee constituted as aforesaid is still evaluating the best value creation option, Biocon said.

 

Brokerages view on Biocon

 

Following an earnings revival in FY25, Biocon is entering a scale-up phase, poised for strong earnings growth driven by robust traction across segments and improved profitability. The ongoing financial deleverage is expected to further enhance earnings prospects, according to Motilal Oswal Financial Services (MOFSL) Q2 result update report.

 

Revenue/EBITDA are expected to record a compound annual growth rate (CAGR) of 16 per cent over FY25-28, while earnings are expected to compound at a significantly higher rate of 77 per cent, supported by financial deleveraging benefits, the brokerage firm said while reiterating ‘BUY’ rating on Biocon and target price of ₹480 per share.

 

MOFSL has trimmed its earnings estimate for FY26/FY27/FY28 by 2 per cent/4 per cent/3 per cent, factoring in procedural time required to add Insulin As part biosimilar in the formulary list, gradual reduction in interest costs, and R&D spending to boost product pipeline across the biosimilar/generics segments.

 

Biocon stock hit a fresh 52-week high on November 18, 2025 and has witnessed some retracement from higher levels. However, considering significant delivery-based accumulation seen in the stock in the last few weeks, technical analysts at ICICI Securities expect the stock to find support in the range of ₹390-400 levels and resume a fresh uptrend.

 

The Nifty Pharma index has been largely consolidating around 22,500 levels since July and despite recovery in the headline index, it failed to exhibit any momentum due to lackluster performance from sectoral heavyweights. However, second tier names from the sector are showing significant strength. Biocon is such a stock which has witnessed continued accumulation in the futures segment and is likely to extend the current momentum towards life highs near ₹490 levels, the brokerage firm said in a report dated November 19, 2025.

  ==================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.